Bitcoin Breaks Below Key Support; Movement to $7,000 May Be Inbound
Bitcoin (BTC) and the aggregated crypto markets have incurred some bearish momentum over the past several hours, as sellers have pushed the cryptocurrency’s price below a key support level, which could mean significantly further losses are imminent.
It is important to note that BTC did wick as low as $7,900 overnight before bulls stepped up and pushed it back towards $8,000, although multiple key technical indicators signal that the crypto will likely further extend its recent downtrend.
Bitcoin Breaks Below $8,000 Amidst Bearish Bout of Trading
At the time of writing, Bitcoin is trading down nearly 4% at its current price of just over $8,000, and it has recovered from its lows of $7,900 that were set in the past few hours.
Bitcoin’s slow grind lower over the past several days and weeks has been a bearish sign, and the inability for buyers to sustain any upwards rally in the time since it found major support around $7,800 points to an underlying weakness.
In the near-term, how Bitcoin reacts to its long-established support level at $7,800 will likely elucidate what the crypto’s short-term trend will be.
DonAlt, a popular crypto analyst on Twitter, recently noted that BTC’s next major support region exists right above $7,000, which likely means that a dip below its slight support level at $7,800 will send it reeling to this region.
“$BTC daily update: Still following the plan. A lot of low time frame volatility shaking people out of their positions. In contrast to that, the high time frames haven’t really been that volatile. Just slowly bleeding out. Bulls need to close the daily above $8200 (black),” he explained in a recent tweet,
$BTC daily update:
Still following the plan.A lot of low time frame volatility shaking people out of their positions.In contrast to that, the high time frames haven't really been that volatile.Just slowly bleeding out.Bulls need to close the daily above $8200 (black). pic.twitter.com/bfHTuzfg03
— DonAlt (@CryptoDonAlt) October 15, 2019
BTC Technical Indicator Shows the Crypto is Caught in a Downtrend
DonAlt is not alone in his bearish assessment of Bitcoin’s short-term price action, as other analysts believe that the crypto will drop lower in the near-term before it finds meaningful support that allows it to climb higher.
Josh McGruff, another popular cryptocurrency analyst on Twitter, echoed a bearish sentiment in a recent tweet, explaining that he expects BTC to visit lows of $7,400 as multiple technical indicators are flipping bearish.
“We dropped to 7600, didn’t come as low as 7400 but I think we will still. OBV is in a clear downtrend now, would need to see that break up before I expect us to recover. 200EMA was broken and retested as resistance which rejected $BTC. Guppy is Bearish, Ichi Bearish,” he explained.
We dropped to 7600, didn't come as low as 7400 but I think we will still.
OBV is in a clear downtrend now, would need to see that break up before I expect us to recover.
200EMA was broken and retested as resistance which rejected $BTC. Guppy is Bearish, Ichi Bearish. pic.twitter.com/1uaJ2KK0Au
— Josh McGruff (@JoshMcGruff) October 16, 2019
How BTC reacts to $7,800 will likely offer insight into where the embattled cryptocurrency will head in the near-term.
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